"Growing demand in the automotive and consumer electronics to promote conformal coating demand"
Conformal coating market size was USD 9.70 billion in 2015. These are mainly applied on printed circuit boards to protect them from heating, corrosion, moisture, dust and other environmental impacts. The product offers optimum protection to the circuit boards, thus improving the performance. Rising consumer shift towards portable and lightweight devices is expected to result in miniaturization of consumer durables, which is likely to drive demand for the technology over the forecast period.
The industry is highly fragmented in nature with the presence of key players including Henkel AG & Company, KGaA, and H.B. Fuller. The majority of the manufacturers procure raw materials from local supplier to reduce transportation cost. Though there are no stringent regulations on the manufacturing of these products; manufacturers need to follow guidelines including segregation and disposal of the chemical waste.
Conformal coatings are widely applied on circuits used in the electronics industry to keep the capacitors, resistors, processors and other components from heating, corrosion, rusting and other atmospheric conditions. Adhesion of the product is one the biggest challenges based by the manufacturers. The complex designs of the circuit boards and demand for high performance efficiency are expected to restrain growth.
The demand is highly influenced by the fluctuations in market trends and consumer requirements in the end-use application industry. Innovation in the industry to adopt UV curing technology to enhance characteristics including adhesion, moisture and corrosion resistance, and prevention against dust is expected to propel growth over the forecast period.
Conformal coating market revenue, by product, 2013 - 2024 (USD Million)
"Acrylic conformal coatings to account for the largest market share owing to their superior characteristics"
Acrylic conformal coatings accounted for over 40% of the overall revenue share in 2015. Superior moisture resistance and surface adhesion rate offered by these coatings is expected to drive demand over the forecast period. This technology requires less time for drying and to meet the required physical properties. In addition, acrylics emit a low amount of heat during the curing process which eliminates the risk of potential damage to heat-sensitive components which is anticipated to be the contributing factor for the industry growth.
Silicone coatings is expected to grow at a CAGR of below 6% from 2016 to 2024. Growing demand in high-temperature applications in the industrial and manufacturing sector is anticipated to drive demand. Growing manufacturing sector coupled with the increasing need for automation is expected to have a positive impact on the market growth. However, difficulty in repairing and removal is expected to restrain growth over the next eight years.
"Increasing penetration of the product in consumer electronics industry is expected to propel demand"
Consumer electronics is expected to account for over 40% of the total demand in 2015. In consumer electronics, the technology imparts desirable characteristics such as high performance efficiency, ease of application, sustainability, quality and functionality, which results increased lifespan of the product. Growing demand for consumer electronics gadgets including smartphones, laptops, computers, washing machines, refrigerators and TVs across the globe is expected to have a positive impact on the industry growth over the forecast period.
The demand for conformal coatings in the automotive application was valued at USD 2.1 billion and is expected to grow at a CAGR of over 4% from 2016 to 2024. Growing demand for coated PCBs in automotive and electronics industry owing to their high corrosion resistance, hydrophobicity, and salt stability is expected to have a positive impact on the growth.
"Asia Pacific to dominate conformal coating market owing to the rapid growth of automotive and aerospace industry"
Asia Pacific dominated the industry and accounted for over 55% of the overall revenue share in 2015. China, Taiwan, and Korea are the electronic hubs in the world and a major manufacturer of consumer goods and automobiles. Rising consumer disposable income and changing consumer lifestyle in the region is expected to drive the growth of medical, aerospace and consumer electronics industry, which in turn is anticipated to drive growth over the forecast period.
North America is expected to be the second largest market on account of the high investment in aerospace and medical sector. Increasing government spending on terrorism and defense sector is expected to have a positive impact on the industry growth over the next eight years.
Demand in marine and renewable energy devices is growing substantially on account of the technological advancements in the sectors. The increasing application of the product in marine electronics including fishfinder, sonar, marine radar, GPS, fiber optic gyrocompass, satellite television, and marine fuel management is expected to augment demand for the product over the projected period.
"Highly competitive market owing to low product differentiation"
The conformal coating market is highly competitive owing to low product differentiation and as the presence of numerous manufacturers. Major players including Henkel AG & Company, KGaA, Shin-Etsu Chemical Co., Ltd., DOW Corning and H. B. Fuller are actively involved in the industry, with numerous product innovations and strategic alliances, which are being adopted by other players as well.
Other industry participants include Chemtronics, Chase Corporation, Electrolube, Europlasma NV, MG Chemicals, Kisco Conformal Coatings LLC, Dymax Corporation, Altana AG Electrical Insulation, ACC Silicones Ltd., CSL Silicones Inc. and Aalpha Conformal Coatings.
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